Professional Documents
Culture Documents
The Genesis
Derived from a Latin word participare participation means sharing/taking part Sharing is a bilateral process and it has A functional aspect, and A motivational aspect Workers Participation in Management highlights both these aspects well The functional aspect is a role in deciding The motivational aspect is the natural involvement after deciding
CB vs. WPM : Heart vs. Soul Collective Bargaining is based on Conflict or at least the perception of Conflict Highlights need for synergy A step in the Working Class Movement WPM is based on Cooperation Highlights SYNERGY itself A step in Management Effectiveness
Objectives of WPM
Pie enlarging NOT Pie splitting Gain sharing improving profitability Future sharing improving competitiveness Power sharing Placing Stockholders and Stakeholders on a even keel Self actualisation availing opportunity to contribute meaningfully
QWL coined by Louis Davis in 1972 The basic idea: Promote individual learning and development Provide individuals with influence and control over what they do and how they do it Make available to the individuals interesting and meaningful work as a source of personal satisfaction and a means to value personal rewards
Defining WPM
A system of communication and consultation, either formal or informal, by which employees of an organisation are kept informed about the affairs of the undertaking and through which they express their opinion and contribute to the management decisions
Hierarchy
Doing
Workers
Forms of Participation
Informative Information Sharing Involving Consultative Idea generating Democratic functioning Co deterministic Joint decision making Partnering
Dimension
Psychological contract Behaviour referent Relations Organisation and design
Industrial Relation
Compliance Norms, customs and practices Low trust, pluralist, Collective Formal roles, hierarchy, Division of labour, Managerial controls
HRM/HRD
Commitment
Values / Mission
High trust, unitarist, Individual Flexible roles, Flat structure/teamwork Autonomy, self-control
WPM as a Bridge
Organisational Commitment has 3 aspects: 1. Identification with goals & values 2. A desire to belong to the Organisation 3. A willingness to display effort on behalf of Organisation Union Commitment has the same 3 aspects The key issue is Compatibility of Goals and Values of the Company and the Union in the eyes of the Employee/worker WPM bridges the Gap, while CB shows it
Todays Workplace
Strategic level:
Supportive Business Strategies Top Management Commitment Effective voice for Human Resources in Strategy making and Governance
Functional level:
Staffing based on employment stabilisation Investment in training and development Contingent compensation that reinforces
Workplace level:
High standards of employee selection Broad task design and teamwork Employee involvement in problem solving Climate of cooperation and trust
It was set up as a propagandist committee to arouse working men, and public opinion generally, to the importance of the movement for making workers everywhere partners in their workshops. Renamed later as Industrial Co-partnership Association and again after the Word War-II as the Industrial Participation Association 1989: Renamed again as
Partnership post1990s will not emphasise institutionalised participation, nor a tripartite approach The emphasis will be on Attitudes & Culture It is now a question of building trust, recognising differences, finding common ground, and applying key partnership principles: Commitment to organisational success Respecting legitimacy of stakeholders in business
Attitudes towards Job security is changing Employers want more flexibility and the Employees want more stability Employment security is a desirable framework for having employee involvement /commitment Concept of Employability as substitute for continued Employment has arrived Employers responsible for building capabilities in employees to survive and sustain after Exit
Representative consultation mean systems of joint consultation, commonly referred to in India as Joint Councils for WPM For sustaining the highest levels of competitiveness,
It is essential that all employees cooperate with each other to understand the business, economic & social context in which they are asked to work, and Have appropriate forums to influence decision makers at all relevant management levels so that there is the best chance of a well judged and full hearted contribution from every employee
2.
Co-determination means Representation of the employees voice at the decision making table With the transformation of business ownership from single owner to Stock holders, the employees have become the largest stakeholder Growing recognition of alignment of interests of the Firm and the employee-stakeholders Mutuality of interest among all stakeholders is shifting the bargaining mind-set towards partnership
A common Vision and the Goal A cultural change program starting with the Managers A systematic revision of reward, status and conditions Business-focused consultative arrangements from the shop-floor to the boardroom multiple MOUs An agreed policy to manage employment security A major commitment to employee development and training
The Works Committee under ID Act, 1947 The Directive Principles of State Policy under Indian Constitution Recommendations of the GOI Study Group & ILC 15th session (1957) Joint Management Councils The 2nd Five Year Plan recommendations for setting up Joint Councils for Organisations employing 500 or more people GOI scheme for Board representation (1971) GOI scheme on WPM in 1975 20 point program 1975: DPSP amended & WPM inserted at S/43a
1977: The 1975 scheme extended to Service sector employing 100 or more people
1978: Janata Govt. appointed Tripartite Committee, recommended 3-tier structure for participation Board, Plant, Shopfloor 1983: WPM scheme for CPSUs introduced
1985-86: Union Budget opened Stock options for employees (limited to 5%)
Workers participation in Management, as a concept is philosophically sound & rich WPM derives merit from the principle of Trusteeship enunciated by Mahatma Gandhi It is an ideological extension of democratic spirit and principles for the workplace True democracy & free market economy go hand in hand; regulation stifled growth of WPM
The irony of zero Rights for workers in Communist ruled Soviet Union and PRC
WPM / Partnership is likely to flourish under liberalisation, while it could not succeed earlier